Viterra enters canola crushing j.v. in China
April 20, 2010
by Eric Schroeder
CALGARY, ALTA. — Viterra Inc. has entered into a joint venture with Guangxi Beibu Gulf International Port Group Co. Ltd. to build a canola crushing facility in the province of Guangxi, South China, at the port of Fangchenggang. The facility is expected to crush 2,000 tonnes of canola per day, or approximately 680,000 tonnes annually.
Viterra said it will invest approximately $20 million to $25 million in the joint venture — Fangchenggang Maple Grain & Oil Industrial Co. Ltd. Construction — and will hold a 49% interest in the enterprise, the maximum allowable investment in the market. Guangxi Beibu Gulf International Port Group will have a 51% share.
Construction will begin in May and is expected to be complete in approximately 18 months.
“We are very pleased to enter this joint venture with Guangxi Beibu Gulf International Port Group,” said Mayo Schmidt, president and chief executive officer of Viterra. “Their significant relationships and experience in the region are highly valued, and we look forward to a prosperous future with them. Our joint venture fits well with our overall strategy to expand our processing value chain into key end-use markets such as China, where, over the course of several decades, we have established long-lasting sales and marketing relationships and where the future demand for quality food ingredients is forecast to rise substantially.”
Guangxi Beibu Gulf International Port Group Co. Ltd. is a state-owned company of the Guangxi Zhuang Autonomous Region Government responsible for the operation of the three coastal ports that comprise the Ports of Guangxi. The port handles more than $5.5 billion in trade per year and is comprised of more than 50 production berths with the ability to handle approximately 100 million tonnes of cargo.